Is Free Republic a Fraud? Is it time for Free Republic to go away?

Free Republic has had one helluva run over the last five years or so. We helped impeach one president and helped get another into office. We've been active in demonstrations and protests in nearly every city across the nation. We've participated in conventions, petition drives, activism campaigns and projects for dozens of conservative causes.

We've grown from a tiny web site with a few hundred posters and readers from the time of inception in 1996, to one with tens of thousands of participants today. Along the way we've made lots of great friends and, unfortunately, also made lots of bitter enemies.

We've grown from a small web site that I could manage myself on a part-time basis to a huge monster that has totally consumed all of my time and resources plus nearly all of John's time, plus the time and resources of many dedicated FReepers who volunteer or contribute large amounts of their own time and money.

The site is now consuming all of a 10 mbps dedicated line with two servers and we're still growing, and it consumes large amounts of money to keep all this running. In the early years, it only took a few thousand dollars per month to keep Free Republic on the air, but it is now costing over $20,000 per month to cover all expenses.

The major costs include approximately $8,000 per month for bandwidth, 3,000 for systems management and programming services, 7,000 for management, operating and administrative services, plus two or three thousand per month for miscellaneous office expenses, telephone, communications, repairs & maintenance, travel & lodging, postage, rentals, insurance, legal fees, accounting fees, etc., etc.

We anticipate a reduction in bandwidth costs next year as we renegotiate our contract (the market price for bandwidth has fallen recently), however, that will be more than offset by an expected increase in costs of our legal expenses. As most of you know, our pro bono attorney has left us and we've hired a new attorney to continue with our case, plus we have the suit against eschoir to pay for. My projections are that our regular monthly expenses for next year will be running in the neighborhood of $22,000 per month, or approximately $264,000 total for the year. This means we will need to raise approximately $66,000 per quarter.

Talking about making enemies, we've got several ex-FReepers and other detractors who are claiming on their anti-freeper web sites that I am ripping off the donors and that Free Republic is a fraud. Now, Free Republic is what it is, and it is definitely not a fraud. It is a conservative news discussion forum that encourages participation in politics and activism projects. It is not being billed as anything else. We are not selling or promising anything. And I am being up front about our operating costs. The costs of running Free Republic are what I've stated above and they are necessary to keep FR on the air. I do not have the financial wherewithal to operate this site without your help. If the majority of the FReepers feel that these costs are out of line or too much to bear or that Free Republic is no longer wanted or needed, then we will either cut it back or shut it down or do something altogether different.

I've also been criticized about not making our financials public. Well, the reason I do not want to do this is that I have been sued, both personally and as Free Republic, LLC. The people suing us want to bankrupt us and shut us down. They subpoenaed our financial records, but we refused to turn them over. The judge agreed that the plaintiffs have no right to the information, thus I have no intention of making any more of it public than I absolutely have to, until this lawsuit is resolved. You all know the amounts of money we raise if you follow the fundraising threads. It is all above board and out in the open. The totals posted by BadJoe are usually pretty close to the actual cash received and the amounts expended are pretty close to the amounts projected. No one is getting rich here and no one is being ripped off. The funds raised are being used for the purposes stated, and that is keeping this website on the air and that's it. Nothing fraudulent about it. Those who want to help fund us freely do so with nothing expected in return. Those who do not want to contribute do not have to.

There was a thread running this morning where people were making all kinds of accusations about Free Republic "hiding the truth" or whatever. These accusations are being made by Chuck Allan and others and fall along the same line with the accusations being made by some of the earlier banees or AFers including Mojo, Inspector Harry Callahan, Arator, keep U.S. Sovereign, TKEman and others. Some of these people are existing FReepers and some are banned. I am going to reinstate Mojo, Inspector Harry Callahan and Arator's accounts so they can join Chuck Allan, TKEman, K.U.S.S. and whomever else wants to get involved, and I invite them to come onto this thread and make their accusations public. As long as they do not go onto other threads and make a nuisance of themselves, I will let them have their say.

Like I said above, if it is time for Free Republic to go away so be it. Those who want to keep it going speak up. Those who want it to go away, tell us why. But if those who want it to be gone lose out in the debate, then I'd say they should just go away themselves, or, in the very least, shut up and quit whining about it.

Single me out? I am one of quite a few. A quick glance at this thread shows that none of my fellow "antis" as we are called, seems to have posted. Not sure of that. Oh well.

First, let me state that I have no problem with your site management per se. In fact, I am in broad agreement with the management of this site in terms of banning posters for racism, kookery, etc. I would include most of Arator's crowd in that category. This is well known to those that post on the Reformation site. I have Arator on ignore. I would ban Arator. He knows that.

In fact, I have Eschoir on ignore over there. This has been posted over there. Several times. Why? Because I have come to believe that he is simply seeking attention, and really not worth the listening to because of that fact. He seems to be the foci of many of the disputes that arise on the "anti" boards. One has to ask oneself if there's a fire where a lot of smoke exists. I've found it interesting that he felt it necessary to create over 250 screen names to try and draw attention to himself. This shows the character of the man, and what he's about.

Let's face it, the guy is an underemployed lawyer. No better. No worse. I don't even trust his legal opinion on the lawsuit. If he were busy with clients, he would not post 24/7. I like him, but nevertheless, the truth must be spoken.

Having said that, I feel strongly that some sort of accounting should be made for the monies raised by Free Republic. This is ultimately best for the conservative movement which you claim to hold so dear. The conservative movement cannot get into a Clintonesque type situation in which we are not holding accountable those that represent us, whether on the net, or in political operations. Sadly, I've come to the conclusion that your refusal to account in a real way for the monies raised represent a lack of accountability that I simply am not willing to tolerate in conservative circles.

I would like to see the following accounting tools posted:
Chart of Accounts complete - specifically, monies paid to employees and representatives of Free Republic
Statement of Cash Flows
Balance Sheet
Income Statement

Specifically, I would like to see the documents that the Accountants are producing, NOT a raw posting of said documents worked up by Bob J or someone else. Why is this so hard to do? Sure, people are suing you. But these documents were not posted here prior to the lawsuit. Bob J said when I raised this issue earlier this year that I had seen them. I haven't. You know dang well that these documents are required to conduct business operations. You and I know they exist for Free Republic. Just post them. Give them to us. I posted on Reformation that the anti sites would go away if this issue could be resolved.

The lawsuit exists because you refused to quit posting full text documents. How can you admit otherwise? Your posts on this matter exist on the anti sites. Does Drudge do this? Other sites? I don't believe this constitutes "fair use," regardless of what you think.

Ultimately, this lawsuit issue will shut down Free Republic. Already your "pro bono" lawyer has agreed to 1 million dollars regarding this. I'm not a lawyer, but have worked for some of the high powered ones. Upon questioning, they think you're wrong on this issue.

The other problem I have is with your original position regarding George W. Bush and his alleged involvement in the "coke running conspiracy." It appears that you've changed your views to stay with the main ideological and political flow of the FReepers. If Bush was such a criminal, then why vote for him? Honestly, your original views on a number of issues appear to be minor league Bircher. I can understand changing views, but to this extent?

I also deeply resent some of the powers that be calling on the carpet those that ask for accountability, and the fact that one of the PTB used a vulgar word in a thread that was flushed, calling a member of this forum a C##T. If you need documentation of this, I can certainly post a link. You know who and what I'm talking about. And this person would represent themself as a fine upstanding Christian. Give me a break.

In summation, all I ask for is the accounting tools. Nothing more, nothing less. Should you do so, I will pony up $500 over the next year, well within my financial means. All else is minor, and can be easily forgotten and forgiven for the cause. I would say failure to do so ultimately hurts the conservative cause in the sense that it gives our opponents such as Eschoir cause to whine and moan. And I'm not even that conservative. My views are well known here.

Finally, will this thread be flushed? Will my account be deleted for raising these points?

In an effort to keep the thread alive, I will not post here again this evening (heck, it is almost 2am on the East Coast), but will return to answer your and others' replies later tomorrow.

Jim, I've been around for awhile, but have posted infrequently due primarily to an already full schedule (I am a scientist working for the government, have a family, and am active in civic and church affairs). Nevertheless, I have enjoyed FR, particularly when there was a defining vision to the forum (e.g., exposing Clinton's follies). But I find myself using the forum less and less in recent years as the primary mission of those posting seems to be entertainment (e.g., debate over a broad range of issues) rather than public service. So perhaps charging a fee would be appropriate.

Its a good time to rethink your vision and see if there is a particular issue that can re-energize the public service part of this. In other words, what does the body politic need that FR can provide? I don't know the answer, but FR has made some substantial contributions in the past and should be able to do so in the future. There are still issues out there such as holding democrats and the media accountable to what they say. Talk to some of your influential people that you have helped in the past and get their viewpoint.

The main objective is to be effective and to make a difference. You have done that in the past and I think that it is quite appropriate that you are questioning your effectiveness now. Again, if you can't find that burning issue or vision, charge for participation and encourage yourself in the fact that some good is still being done as posters sharpen their debating skills on a host of issues.

Dear Jim, First of all a heart felt Thank You for creating Free Republic duirng the muck and mire of the Clinton years. Those were bad times and this site kept me informed.

I never realized how much this place cost. Too much success (and litigation) can be a bad thing. I think that is the law of diminishing returns, but it has been a long time since I took economics. Never have I thought you a fraud. Instead, I have marvelled at your abilities.

Would I like to see Free Republic continue? The answer is Aye. At what cost? Ah, there's the rub. Count me in the lower economic tier at FR. It is easy to say that to have access to JohnHaung2 and Kattracks postings $2/mo (paid annually) would be money well spent. But do I really want to pay $2/mo to have people "cover" their profanity by changing one letter (or not covering it at all); or to hear all the women bashers come out; or the ones who make racist remarks; or the anti-Christians?

One the one hand Free Republic is one of the most intelligent sites on the internet; but the other hand of Free Republic is ignorant (if you accept the argument that one swears because he hasn't the vocabulary to otherwise express himself) and un-American (if you accept the idea that this country was founded for all people who seek freedom, liberty, life...). I do not refer anyone to Free Republic for just that reason: I don't want their sensibilities shocked or attacked.

Already my tax dollars support art which I would not classify as art and which would not exist without subsidy and a multitude of other wastes. Do I make a donation that is similiarly compromised? What to do, Jim, what to do? Would I mind seeing the site scaled back some? I think it might be a healthy thing, but I don't use a lot of bells and whistles. When a final choice is given I will have lots of mental weighing to accomplish in order to make my choice.

Again, I thank you. Best wishes in your own decision.

Jimbo, you better not give it up, otherwise I will be a really pissed off customer. The way you are running this big ol' ship is just fine, so don't you dare to change anything.Remember the ol' say "you can not please all the people all the time",and you should not try it, it is impossible, so grow some elephant skin and keep on going. Forget about whiners and moaners, they allways will be there...so what!
They all should get a life and move on.Feelings will be hurt, but guess what...life's tough and they better get a grip.It is not your problem they can not get their act togheter. The only thing you should care is to how, get the finances in, to keep on freeping. Thats all you should care about...period.

I have to tilt my hat to you, your son and everybody helping out to make this site the way it is. Sir you have my admiration for your resilience and devotion in creating this forum and sticking to it from day one. Just do not give up...I am damn sure that we can find a way to resolve this little pesky monetary issue.

Thank you JIM ROBINSON

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